Krugman: another masterpiece about that strange country he lives in

For those like Tel and Patrick who apparently feel compelled (seemingly on purely partisan grounds) to oppose Obama’s health plan irrespective of the facts, here are a few facts to ponder about the current US health care system (via Wikipedia):

Current estimates put U.S. health care spending at approximately 16% of GDP, second highest to East Timor (Timor-Leste) among all United Nations member nations.[7] The Health and Human Services Department expects that the health share of GDP will continue its historical upward trend, reaching 19.5 percent of GDP by 2017.[33][34] Of each dollar spent on health care in the United States 31% goes to hospital care, 21% goes to physician services, 10% to pharmaceuticals, 8% to nursing homes, 7% to administrative costs, and 23% to all other categories (diagnostic laboratory services, pharmacies, medical device manufacturers, etc.[28]

The Office of the Actuary (OACT) of the Centers for Medicare and Medicaid Services publishes data on total health care spending in the United States, including both historical levels and future projections.[35] In 2007, the U.S. spent $2.26 trillion on health care, or $7,439 per person, up from $2.1 trillion, or $7,026 per capita, the previous year.[36] Spending in 2006 represented 16% of GDP, an increase of 6.7% over 2004 spending. Growth in spending is projected to average 6.7% annually over the period 2007 through 2017. A recently released report on the latest figures showed that the US spent $2.5 trillion, $8,047 per person, on health care in 2009 and that this amount represented 17.3% of the economy, up from 16.2% in 2008.[37] Health insurance costs are rising faster than wages or inflation, and medical causes were cited by about half of bankruptcy filers in the United States in 2001.[38]

The Congressional Budget Office has found that “about half of all growth in health care spending in the past several decades was associated with changes in medical care made possible by advances in technology.” Other factors included higher income levels, changes in insurance coverage, and rising prices.[39] Hospitals and physician spending take the largest share of the health care dollar, while prescription drugs take about 10 percent.[40] The use of prescription drugs is increasing among adults who have drug coverage.[41]

One analysis of international spending levels in the year 2000 found that while the U.S. spends more on health care than other countries in the Organisation for Economic Co-operation and Development (OECD), the use of health care services in the U.S. is below the OECD median by most measures. The authors of the study concluded that the prices paid for health care services are much higher in the U.S.[42]

Health care spending in the United States is concentrated. An analysis of the 1996 Medical Expenditure Panel Survey found that the 1% of the population with the highest spending accounted for 27% of aggregate health care spending. The highest-spending 5% of the population accounted for more than half of all spending. These patterns were stable through the 1970s and 1980s, and some data suggest that they may have been typical of the mid-to-early 20th century as well.[43][44] One study by the Agency for Healthcare Research and Quality (AHRQ) found significant persistence in the level of health care spending from year to year. Of the 1% of the population with the highest health care spending in 2002, 24.3% maintained their ranking in the top 1% in 2003. Of the 5% with the highest spending in 2002, 34% maintained that ranking in 2003. Individuals over age 45 were disproportionately represented among those who were in the top decile of spending for both years.[45]